UP 3Q earnings soar to record

Union Pacific Corp. reported third-quarter net income of $1.15 billion, or $2.48 per share, Thursday, Oct. 17, 2013, up 10% from $1 billion, or $2.19 per share, in the third quarter of 2012.

Revenue rose 4% to $5.6 million from $5.34 billion in last year's third quarter, and in line with forecasts by Wall Street analysts, despite UP warning Wall Street earlier this month that a decline in coal volume would force revenue and earnings lower than anticipated by investors. Flood damage in Colorado during September also hampered the Class I railroad's operations. UP said higher revenue resulted from transporting vehicles and industrial products.

"Union Pacific achieved all-time record financial results this quarter," said UP CEO Jack Koraleski. "Despite the challenges of lower coal and grain volumes, in addition to disruptions caused by the Colorado flooding, we managed our network efficiently and continued to benefit from the strength of our diverse franchise."

Analysts polled by Thomson Reuters had expected Union Pacific to report net income of $1.16 billion, or adjusted earnings per share of $2.50. But UP recently cut its earnings and revenue outlook, saying it would miss earlier Wall Street expectations even as it set a new record.